The base currency is the first currency in a forex pair. It represents the currency you are buying or selling. The price of the pair tells you how much of the quote currency (the second currency) is needed to buy one unit of the base currency. For example, in EUR/USD, the euro is the base currency and the US dollar is the quote currency.
In GBP/USD at 1.2700, GBP is the base currency. Buying 1 lot of GBP/USD means you are buying 100,000 British pounds and selling 127,000 US dollars. If the price rises to 1.2800, the base currency (GBP) has strengthened.
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